Why Burlington Stores (BURL) Shares Are Gaining Today - Burlington Stores (NYSE:BURL)

Off-price retailer Burlington Stores Inc BURL reported fourth-quarter FY22 sales growth of 5% year-on-year to $2.74 billion, beating the consensus of $2.60 billion. Comparable store sales decreased by 2%.
Gross margin expanded by 90 basis points Y/Y to 40.7%. Total costs and expenses rose 2.6% Y/Y to $2.5 billion.
Adjusted EBIT was $274 million versus $241 million a year ago. Adjusted EBITDA rose 11.4% to $342 million.
Adjusted EPS of $2.96 beat the analyst consensus of $2.73.
The company held $879.2 million in cash and equivalents as of Jan. 28, 2023.
Merchandise inventories at the end of FY22 were $1.182 billion vs. $1.021 billion last year.
"The acceleration in our trend was partly driven by improved conversion and basket size, which we attribute to more compelling value in our assortment, but was also driven by improved traffic, which we interpret as a sign that the headwinds that we saw through most of 2022 are beginning to moderate," said CEO Michael O'Sullivan.
Outlook: Burlington expects FY23 adjusted EPS of $5.50 - $6.00 versus the Street view of $6.65.
It sees FY23 sales growth of 12% - 14%, including approximately 2% from the 53rd week, on top of a 7% decrease in FY22.
For Q1, BURL sees sales growth of 12% - 14%; Adjusted EPS of $0.85 - $0.95 (consensus $0.82).
Price Action: BURL shares are trading higher by 4.09% at $226.00 in premarket on the last check Thursday.
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Why Off-Price Retailer Burlington Stores Stock Is Gaining Today